Sunset Harbor Resort Condominium Association, Inc Proposed Budget and Maintenance Fee with Waiver

Transcription

1 Proposed Budget and Maintenance Fee with Waiver January 1, - December 31, VS. UNIT WEEKS PER UNIT PER UNIT Increase/(Decrease) 2,040 WEEK WEEK $ Per U/W % U/W TOTAL INCOME Assessment Income Reserve Income Other Income Total Association Income $1, $1, $ % $2,304,206 $ $ $ % $599,760 $ $ $ % $259,266 $1, $1, $ % $3,163,232 General & Administration Engineering Housekeeping Cable Electricity Fire, Life and Safety Heating/AC Landscape/Grounds Maintenance Pest Control Plumbing Pool and Spa Security Trash Removal Telephone Water Sewer Sub-Total Operating Expenses FIXED Assessment, Billing, Collections Audit $ $ $ % $596,131 $ $ $ % $317,283 $ $ $ % $358,880 $8.82 $7.35 ($1.47) (16.67%) $15,000 $59.04 $56.08 ($2.96) (5.01%) $114,400 $4.75 $4.88 $ % $9,950 $1.91 $1.95 $ % $3,975 $15.17 $15.44 $ % $31,500 $2.74 $2.89 $ % $5,900 $1.18 $1.18 $ % $2,400 $5.88 $6.03 $ % $12,300 $25.30 $25.02 ($0.28) (1.11%) $51,050 $2.14 $2.54 $ % $5,176 $14.53 $14.85 $ % $30,284 $23.43 $25.54 $ % $52,100 $15.10 $15.15 $ % $30,900 $ $ $ % $1,637,228 $7.55 $7.78 $ % $15,870 $5.35 $5.35 $ % $10,918 Bad Debt $11.03 $6.62 ($4.41) (39.98%) $13,500 Club Fee $ $ $ % $295,800 Division Fees $2.00 $2.00 $ % $4,080 Insurance Workers Comp Insurance License/Permits $72.55 $67.67 ($4.88) (6.73%) $138,056 $2.22 $1.82 ($0.40) (18.02%) $3,713 $1.57 $1.81 $ % $3,696 Fees - Parking $38.06 $38.65 $ % $78,850 Fees - Truman Annex Master POA $6.95 $7.08 $ % $14,448 Accounting Support $13.04 $13.43 $ % $27,400 Sub-Total Fixed Expenses TOTAL FIXED & OPERATING Management Fee Corporate Taxes Deficit Reduction Total Common Expenses Reserve for Replacement Fund Total Association Expenses Less Other Income Total Due Association Estimated Ad Valorem Taxes $ $ ($4.11) (1.36%) $606,331 $1, $1, $ % $2,243,560 $ $ $ % $294,913 $2.21 $12.25 $ % $25,000 $0.00 $0.00 $ % $0 $1, $1, $ % $2,563,472 $ $ $ % $599,760 $1, $1, $ % $3,163,232 ($113.85) ($127.09) ($13.24) 11.63% ($259,266) $1, $1, $ % $2,903,966 $ $83.82 ($48.53) (36.67%) $171,000 The following disclaimer forms an integral part of this document. Any and all information herein contained is expressly made subject to the terms of the following disclaimer. The projections, estimates and forecasts contained herein (collectively, the Estimates ) are based solely upon information currently available to HV Global Management Corp. ("HV Global") and HV Global's good faith assumptions regarding the operation of the project during the time periods herein set forth. HV Global cannot and does not warrant, represent or guarantee the accuracy of the estimates or the economic results of the operation of the project, and HV Global does not undertake any obligation to update or supplement the estimates subsequent to the initial date of delivery. Any and all such representations, warranties and/or guarantees (verbal, written, expressed or implied) are hereby disclaimed. Neither the content of the estimates nor HV Global s delivery hereof shall confer upon the recipient any right whatsoever to rely upon the information and data contained herein. The estimates are intended to be used solely for informational purposes, and are not intended to be used as an inducement for action. Without limiting the foregoing, HV Global shall not be deemed to be recipient s agent, advisor, consultant, fiduciary or underwriter with respect to the purchase, acquisition or development of the project. Recipient acknowledges that it may retain third party advisors to perform such functions on its behalf, and is encouraged by HV Global to do so. Recipient s receipt and acceptance of this document shall be deemed by HV Global to be recipient s acknowledgment of the terms of this disclaimer. RELATED PARTY TRANSACTION DISCLOSURES OR NOTES

2 Proposed Budget and Maintenance Fee with Waiver RELATED PARTY TRANSACTION DISCLOSURES OR NOTES During the year ended December 31, 2014, the amount of maintenance fees assessed to the Developer was $38,098. As of December 31, 2014, there was no amount due from the Developer for maintenance fees on unsold unit-weeks. As of December 31, 2014, the Developer owned 33 unit-weeks. HV Global Management Corporation ("HVGMC"), an affiliate of the Developer, and its affiliates provided certain services to the Association. The amounts paid or accrued to HVGMC during the year ended December 31,2014, were as follows. Accounting $ 25,827 Assessments, billing and collections 14,959 Management fees 265,255 Human resource benefits - administration fees 805 Payroll 391,914 Payroll taxes 31,943 Payroll benefits 67,769 Computer 15,400 $ 813,872 As of December 31, 2014, $65,824 of the above expenses was due to HVGMC and is included in due to related parties. In addition, HVGMC paid various expenditures on behalf of the Association during the year ended December 31, As of December 31, 2014, $67,194 was due to HVGMC related to reimbursement of those expenses and is included in due to related parties. HVGMC collects the maintenance fees from the unit-week owners and remits to the Association. As of December 31, 2014, the amount collected and not remitted was $816,829 and is included in due from related parties. As of December 31, 2014, $17,883 was due from HVGMC for reimbursements due to the Association and is included in due from related parties. The amounts paid or accrued to the Club during the year ended December 31, 2014 for club fees was $282,987. As of December 31, 2014, the amount of club dues collected, but not yet remitted was $1,100 and is included in due to related parties. The Association is one of several parcels of land that is subject to the Declaration of Covenants, Conditions, Restrictions and Easements for the establishment of the Truman Annex Commercial Owners Association, Inc. (the Master ). The Master property includes certain properties in which the property owners have a non-exclusive easement and right to use. The Master was established for the purpose of operating and maintaining the common properties and generally protecting the interests of the owners and the marketability of the parcels that make up the Master property. The master fees attributable to the property comprising the Association are common expenses of the Association pursuant to the Association documents, and are collected from the owners as part of the Association maintenance fee. Master association fees for the year ended December 31, 2014, were $13,898. There was no amount due to the Master as of December 31, The Association has a management agreement with HVGMC. The contract expires November 1, 2015, unless terminated earlier in accordance with its terms and Florida law. The contract automatically renews for successive three-year periods. HVGMC provides on-site management and maintenance services, and off-site administrative and accounting services. ASSOCIATION BOOKS AND RECORDS The books and records of the Association are maintained by HV Global Management Corporation and are located at 140 Fountain Parkway, Suite 570, St. Petersburg, FL

3 SUNSET HARBOR RESORT CONDOMINIUM ASSOCIATION, INC. Proposed Budget with Waiver 40 Units 51 Weeks 2040 Unit Weeks Estimated Estimated Estimated Amount to Estimated Per Per Category Useful Remaining Cost to Balance as be Funded Interest Expenditure Re-alloc Balance as Unit Budget Unit Life Life Replace of 12/31/14 in 2015 Income Summary of Funds of 12/31/15 Week Approved Week Total Statutory & Non-Statutory Reserves 1 Common Elements , ,795 45, ,125 33,266 16, , Elevators ,763 23,152 2, (23,885) 2, , Exterior Building ,286,573 89,426 98, ,837 (16,820) 47, , Mechanical / HVAC ,383 21,402 3, ,065 70, , Pavement / Driveway ,185 15, , , Roof ,500 5, , , Unit Refurbishing ,316,254 1,019, ,129 5,241 1,182,098 (64,882) 143, , Water Features ,916 13,656 20, ,455 1,478 1, , Equipment ,844 3, , ,032,229 1,336, ,500 6,822 1,630,580 (0.00) 248, , STATUTORY Statutory Reserves - 100% funded under Florida Statutes 1 Common Elements , ,829 24, ,400 66,357 16, , Elevators ,763 23,152 2, (23,885) 2, , Exterior Building ,286,573 89,426 98, ,837 (16,820) 47, , Mechanical / HVAC ,383 21,402 3, ,065 70,843 12, Pavement / Driveway ,185 15, , , Roof ,500 5, , , Unit Refurbishing ,316,254 1,019, ,129 5,241 1,182,098 (64,882) 143, , Water Features ,950 13,656 20, ,455 1,478 1, Equipment , ,909,817 1,308, ,650 6,822 1,617,855 33, , , NOT STATUTORY Non-Statutory Reserves - Are not required to be funded under Florida Statutes 1 Common Elements ,601 24,966 20,850-12,725 (33,091) (0) (0.00) 12, Water Features , , Equipment ,844 3, , ,411 28,471 20,850-12,725 (33,091) 3, , check (0) (0.00) (0.00) (0) - 0 During 2014, the Association s Board of Directors contracted with an outside firm to conduct a study to update the estimated useful life and replacement cost of the common property components. This study included both a Physical Analysis and a Financial Analysis. The Physical Analysis contains the information about the current condition and repair or replacement cost of the major common area components the Association is obligated to maintain. The Financial Analysis contains an evaluation of the Association s Reserve Balance. Reserve Funds will be accumulated based on estimated costs. Actual expenditures may vary from the estimates and variations may be material. The above tables are based on the study and present significant information about the components of the common property. The attached disclaimer forms an integral part of this document.

4 Proposed Budget and Maintenance Fee with Full Funding January 1, - December 31, UNIT WEEKS 2, PER UNIT WEEK PER UNIT WEEK 2015 VS. Increase/(Decrease) $ Per U/W % U/W TOTAL INCOME Assessment Income Reserve Income Other Income Total Association Income $1, $1, $ % $2,273,715 $ $ $ % $1,819,403 $ $ $ % $289,757 $1, $2, $ % $4,382,875 General & Administration Engineering Housekeeping Cable Electricity Fire, Life and Safety Heating/AC Landscape/Grounds Maintenance Pest Control Plumbing Pool and Spa Security Trash Removal Telephone Water Sewer Sub-Total Operating Expenses FIXED Assessment, Billing, Collections Audit $ $ $ % $596,131 $ $ $ % $317,283 $ $ $ % $358,880 $8.82 $7.35 ($1.47) (16.67%) $15,000 $59.04 $56.08 ($2.96) (5.01%) $114,400 $4.75 $4.88 $ % $9,950 $1.91 $1.95 $ % $3,975 $15.17 $15.44 $ % $31,500 $2.74 $2.89 $ % $5,900 $1.18 $1.18 $ % $2,400 $5.88 $6.03 $ % $12,300 $25.30 $25.02 ($0.28) (1.11%) $51,050 $2.14 $2.54 $ % $5,176 $14.53 $14.85 $ % $30,284 $23.43 $25.54 $ % $52,100 $15.10 $15.15 $ % $30,900 $ $ $ % $1,637,228 $7.55 $7.78 $ % $15,870 $5.35 $5.35 $ % $10,918 Bad Debt $11.03 $6.62 ($4.41) (39.98%) $13,500 Club Fee $ $ $ % $295,800 Division Fees $2.00 $2.00 $ % $4,080 Insurance Workers Comp Insurance License/Permits $72.55 $67.67 ($4.88) (6.73%) $138,056 $2.22 $1.82 ($0.40) (18.02%) $3,713 $1.57 $1.81 $ % $3,696 Fees - Parking $38.06 $38.65 $ % $78,850 Fees - Truman Annex Master POA $6.95 $7.08 $ % $14,448 Accounting Support $13.04 $13.43 $ % $27,400 Sub-Total Fixed Expenses TOTAL FIXED & OPERATING Management Fee Corporate Taxes Deficit Reduction Total Common Expenses Reserve for Replacement Fund Total Association Expenses Less Other Income Total Due Association Estimated Ad Valorem Taxes $ $ ($4.11) (1.36%) $606,331 $1, $1, $ % $2,243,560 $ $ $ % $294,913 $2.21 $12.25 $ % $25,000 $0.00 $0.00 $ % $0 $1, $1, $ % $2,563,472 $ $ $ % $1,819,403 $1, $2, $ % $4,382,875 ($113.85) ($142.04) ($28.19) 24.76% ($289,757) $1, $2, $ % $4,093,118 $ $83.82 ($48.53) (36.67%) $171,000 The following disclaimer forms an integral part of this document. Any and all information herein contained is expressly madesubject to the terms of the following disclaimer. The projections, estimates and forecasts contained herein (collectively, the Estimates ) are based solely upon information currently available to HV Global Management Corp. ("HV Global") and HV Global's good faith assumptions regarding the operation of the project during the time periods herein set forth. HV Global cannot and does not warrant, represent or guarantee the accuracy of the estimates or the economic results of the operation of the project, and HVGlobal does not undertake any obligation to update or supplement the estimates subsequent to the initial date of delivery. Any and all such representations, warranties and/or guarantees (verbal, written, expressed or implied) are hereby disclaimed. Neither the content of the estimates nor HV Global s delivery hereof shall confer upon the recipient any right whatsoever to rely upon the information and data contained herein. The estimates are intended to be used solely for informational purposes, and are not intended to be used as an inducement for action. Without limiting the foregoing, HV Global shall not be deemed to be recipient s agent, advisor, consultant, fiduciary or underwriter with respect to the purchase, acquisition or development of the project. Recipient acknowledges that it may retain third party advisors to perform such functions on its behalf, and is encouraged by HV Global to do so. Recipient s receipt and acceptance of this document shall be deemed by HV Global to be recipient s acknowledgment of the terms of this disclaimer.

5 Proposed Budget and Maintenance Fee with Full Funding RELATED PARTY TRANSACTION DISCLOSURES OR NOTES During the year ended December 31, 2014, the amount of maintenance fees assessed to the Developer was $38,098. As of December 31, 2014, there was no amount due from the Developer for maintenance fees on unsold unit-weeks. As of December 31, 2014, the Developer owned 33 unit-weeks. HV Global Management Corporation ("HVGMC"), an affiliate of the Developer, and its affiliates provided certain services to the Association. The amounts paid or accrued to HVGMC during the year ended December 31,2014, were as follows. Accounting $ 25,827 Assessments, billing and collections 14,959 Management fees 265,255 Human resource benefits - administration fees 805 Payroll 391,914 Payroll taxes 31,943 Payroll benefits 67,769 Computer 15,400 $ 813,872 As of December 31, 2014, $65,824 of the above expenses was due to HVGMC and is included in due to related parties. In addition, HVGMC paid various expenditures on behalf of the Association during the year ended December 31, As of December 31, 2014, $67,194 was due to HVGMC related to reimbursement of those expenses and is included in due to related parties. HVGMC collects the maintenance fees from the unit-week owners and remits to the Association. As of December 31, 2014, the amount collected and not remitted was $816,829 and is included in due from related parties. As of December 31, 2014, $17,883 was due from HVGMC for reimbursements due to the Association and is included in due from related parties. The amounts paid or accrued to the Club during the year ended December 31, 2014 for club fees was $282,987. As of December 31, 2014, the amount of club dues collected, but not yet remitted was $1,100 and is included in due to related parties. The Association is one of several parcels of land that is subject to the Declaration of Covenants, Conditions, Restrictions and Easements for the establishment of the Truman Annex Commercial Owners Association, Inc. (the Master ). The Master property includes certain properties in which the property owners have a non-exclusive easement and right to use. The Master was established for the purpose of operating and maintaining the common properties and generally protecting the interests of the owners and the marketability of the parcels that make up the Master property. The master fees attributable to the property comprising the Association are common expenses of the Association pursuant to the Association documents, and are collected from the owners as part of the Association maintenance fee. Master association fees for the year ended December 31, 2014, were $13,898. There was no amount due to the Master as of December 31, The Association has a management agreement with HVGMC. The contract expires November 1, 2015, unless terminated earlier in accordance with its terms and Florida law. The contract automatically renews for successive three-year periods. HVGMC provides on-site management and maintenance services, and off-site administrative and accounting services. ASSOCIATION BOOKS AND RECORDS The books and records of the Association are maintained by HV Global Management Corporation and are located at 140 Fountain Parkway, Suite 570, St. Petersburg, FL

6 SUNSET HARBOR RESORT CONDOMINIUM ASSOCIATION, INC. Proposed Budget with Full Funding 40 Units 51 Weeks 2040 Unit Weeks Estimated Estimated Estimated Amount to Estimated Per Per Category Useful Remaining Cost to Balance as be Funded Interest Expenditure Re-alloc Balance as Unit Budget Unit Life Life Replace of 12/31/14 in 2015 Income Summary of Funds of 12/31/15 Week Approved Week Total Statutory & Non-Statutory Reserves 1 Common Elements , ,795 45, ,125 33,266 16, , Elevators ,763 23,152 2, (23,885) 2, , Exterior Building ,286,573 89,426 98, ,837 (16,820) 47, , Mechanical / HVAC ,383 21,402 3, ,065 70, , , Pavement / Driveway ,185 15, , , Roof ,500 5, , , Unit Refurbishing ,316,254 1,019, ,129 5,184 1,182,098 (64,882) 143, ,142, Water Features ,916 13,656 20, ,455 1,478 1, , Equipment ,844 3, , , ,032,229 1,336, ,500 6,822 1,630,580 (0.00) 248, ,819, STATUTORY Statutory Reserves - 100% funded under Florida Statutes 1 Common Elements , ,829 24, ,400 66,357 16, , Elevators ,763 23,152 2, (23,885) 2, , Exterior Building ,286,573 89,426 98, ,837 (16,820) 47, , Mechanical / HVAC ,383 21,402 3, ,065 70,843 12, , Pavement / Driveway ,185 15, , , Roof ,500 5, , , Unit Refurbishing ,316,254 1,019, ,129 5,184 1,182,098 (64,882) 143, ,142, Water Features ,950 13,656 20, ,455 1,478 1, , Equipment , , ,909,817 1,308, ,650 6,822 1,617,855 33, , ,784, NOT STATUTORY Non-Statutory Reserves - Are not required to be funded under Florida Statutes 1 Common Elements ,601 24,966 20,850-12,725 (33,091) (0) (0.00) 22, Water Features , , Equipment ,844 3, , , ,411 28,471 20,850-12,725 (33,091) 3, , check (0) (0.00) (0.00) (0) 0 During 2014, the Association s Board of Directors contracted with an outside firm to conduct a study to update the estimated useful life and replacement cost of the common property components. This study included both a Physical Analysis and a Financial Analysis. The Physical Analysis contains the information about the current condition and repair or replacement cost of the major common area components the Association is obligated to maintain. The Financial Analysis contains an evaluation of the Association s Reserve Balance. Reserve Funds will be accumulated based on estimated costs. Actual expenditures may vary from the estimates and variations may be material. The above tables are based on the study and present significant information about the components of the common property. The attached disclaimer forms an integral part of this document.